The term “tiger cubs” may sound like a reference to baby tigers, but it actually refers to a group of young hedge fund managers who were once protégés of Julian Robertson’s famous Tiger Management. After leaving Tiger Management, these former employees went on to start their own funds, which have collectively become known as the tiger cubs. Today, many of these managers are highly respected in the financial world and their investment strategies are closely watched by investors looking for the next big thing.
The Investment Philosophy of the Tiger Cubs
The investment philosophy of the tiger cubs is based on the principles they learned from Julian Robertson at Tiger Management. They focus on investing in companies with strong fundamentals, a sustainable competitive advantage, and a proven track record of success. Unlike many other hedge funds that rely heavily on leverage and speculation, the tiger cubs prefer to take a long-term view and build positions in companies they believe will outperform over time.
Another hallmark of the tiger cubs’ investment philosophy is their willingness to take concentrated positions in a few select companies. This approach allows them to focus on their best ideas and capitalize on their highest conviction investments. While this strategy can be risky, it can also be highly rewarding for those willing to take the risk.
The Performance of the Tiger Cubs
Over the years, the tiger cubs have earned a reputation for being some of the most successful investors in the financial world. Many of their funds have consistently outperformed the broader market, generating impressive returns for their investors. Of course, not every tiger cub has been successful, and there have been a number of high-profile failures among the group as well.
One of the reasons many investors are drawn to the tiger cubs is their ability to generate alpha, or market-beating returns. This is in part due to their willingness to take concentrated positions in a few select companies, as well as their focus on investing in businesses with strong fundamentals.
Should You Invest with the Tiger Cubs?
While the tiger cubs have certainly had their fair share of success, investing with them is not without risk. As with any investment, it’s important to do your due diligence and make sure you understand the risks involved. Additionally, because the tiger cubs tend to focus on smaller-cap stocks, their funds may be more volatile than other investments.
That being said, if you’re looking for an investment strategy that focuses on fundamentals and has a long-term view, the tiger cubs may be worth considering. Their track record of success and expertise in the financial world make them a compelling option for those looking to invest in hedge funds.
Conclusion
The tiger cubs are a group of young hedge fund managers who have made a name for themselves in the financial world through their focus on fundamentals and long-term investing. While they are not without risk, their performance over the years has been impressive, and many investors continue to look to them for guidance and investment opportunities. Whether or not you choose to invest with the tiger cubs is ultimately up to you, but it’s clear that their investment philosophy and track record of success make them a force to be reckoned with in the financial world.
